Neo Banks – Bellow In Gark http://bellowingark.org/ Wed, 21 Sep 2022 07:45:37 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://bellowingark.org/wp-content/uploads/2021/05/default1.png Neo Banks – Bellow In Gark http://bellowingark.org/ 32 32 Is a banking license synonymous with digital trust? https://bellowingark.org/is-a-banking-license-synonymous-with-digital-trust/ Wed, 21 Sep 2022 04:01:38 +0000 https://bellowingark.org/is-a-banking-license-synonymous-with-digital-trust/ We see a trend for neobanks and fintechs to rely on a banking license to earn – or rather buy – that trust. here we look at the pursuit of a banking license by three different digital players. Why get a license? Earlier this week, Delaware-based Bancorp Bank announced that it had obtained a national […]]]>

We see a trend for neobanks and fintechs to rely on a banking license to earn – or rather buy – that trust. here we look at the pursuit of a banking license by three different digital players.

Why get a license? Earlier this week, Delaware-based Bancorp Bank announced that it had obtained a national bank charter from the Office of the Comptroller of the Currency (OCC). The fintech company has been providing banking and lending services to non-banking entities for over 20 years.

In the Press release Commenting on the new license, CEO Damian Kozlowski expressed his satisfaction at having a new regulatory partner, the OCC, and emphasized safe and healthy banking innovation.

As fraud runs rampant, traditional and non-traditional asset markets behave erratically, and loose fintech regulations create risk for consumers, The Bancorp Bank said obtaining a banking license would reinforce its commitment to regulatory compliance and consumer protection.

Is a license worth it? In a interview with TechCrunch this week, Varos CEO Colin Walsh detailed all the work and costs involved in obtaining a banking license. Varo became the first nationally chartered digital bank in 2020, and Walsh said “100% worth it.”

  • Walsh said a banking license allowed Varo to offer low-cost products and services to consumers. Varo says her main mission is to help those with less money gain opportunities in the financial world, such as construction and access to credit.
  • The banking license also gave Varo greater control over its regulatory compliance. Because Varo does not need to partner with a bank to offer its services, it is not exposed to third party risk.

The main reasons why Varo got a banking license revolved around good customer service and good customer protection, which builds consumer confidence.

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There will be no soft landing for SOFI stocks https://bellowingark.org/there-will-be-no-soft-landing-for-sofi-stocks/ Mon, 19 Sep 2022 15:08:52 +0000 https://bellowingark.org/there-will-be-no-soft-landing-for-sofi-stocks/ Sofi Technologies (NASDAQ:SOFI) the stock was a disappointment for investors. From the start, the neo-banking firm was supposed to disrupt the American financial sector. However, this vision did not become reality in the 2020s. SOFI’s long-term shareholders are still struggling to break even. The central bank’s restrictive monetary policy will certainly not make things easier […]]]>

Sofi Technologies (NASDAQ:SOFI) the stock was a disappointment for investors. From the start, the neo-banking firm was supposed to disrupt the American financial sector. However, this vision did not become reality in the 2020s. SOFI’s long-term shareholders are still struggling to break even.

The central bank’s restrictive monetary policy will certainly not make things easier for SoFi Technologies. In addition, any bullish assumption based on President Joseph Biden’s Student Debt Relief Plan may end in disappointment.

Some people imagined that SoFi Technologies would give traditional banks a hard time. They may have invested in the hope of multi-bagger returns. With SoFi offering personal loans, mortgages, brokerage services and more, the company would surely take significant market share from conventional lenders. Right?

This narrative did not necessarily play out as some investors had hoped. Many American lending institutions are struggling in 2022, and the hawkish Federal Reserve is certainly not helping SoFi Technologies.

Moreover, investors should not rely on the current administration’s student loan policies to save SoFi.

SOFI Sofi Technologies $6.00

Student loan pause didn’t help SOFI stock

SOFI stock already went through its hype phase at the end of 2021, when it hit close to $23. Lately it’s been floundering around $6. The bulls better hope it doesn’t fall below $5 and enter what some would call penny stock territory.

Although SoFi Technologies offers mortgages and other types of loans, let’s face it. SoFi’s bread and butter has been student loans, and the company will likely continue to depend on this type of loan as a major source of revenue.

SoFi student loan income was not enough to make the company profitable in its last reported trimester. Nevertheless, a proclamation from the White House gave some investors hope.

As you may know, the Biden administration wrote off $10,000 to $20,000 in student loan debt per borrower, while extending the pause on student loan debt payments “one last time until 31 December 2022, with payments resuming in January 2023”.

Markets are efficient and forward-looking. All this has been integrated into the SOFI share price. Still, that wasn’t enough to bring the stock price down to $8 or $10, let alone last year’s all-time high.

Fed policy is an obstacle for SoFi Technologies

The seemingly huge student loan pause announcement was meant to be a big catalyst for SoFi, but it failed to move the needle. Meanwhile, society will have to deal with the same problems that the big banks face, namely the Federal Reserve’s aggressive monetary policy.

The big banks will at least have ample capital reserves to help them weather a Fed-induced economic slowdown. On the other hand, SoFi Technologies should struggle as it is not a big company. Keep in mind that SoFi’s market capitalization is less than $5 billion.

As you probably know, the Federal Reserve has raised the federal funds rate several times this year. These are aggressive rate hikes of 50 and even 75 basis points.

First, higher interest rates generally mean more downward pressure on growth stock valuations. So expect traders to avoid SOFI stocks in this tight monetary policy environment.

Second, when the Fed repeatedly raises interest rates, it inhibits lending and borrowing activity. This, of course, is problematic for SoFi Technologies. In other words, you’re essentially “fighting the Fed” if you invest in SoFi now.

What you can do now

The giant traditional banks should be able to withstand aggressively hawkish monetary policy. We can’t say the same of SoFi Technologies with confidence. The company is likely to experience difficulties, as are its shareholders.

SOFI stock has already lost much of its value since the end of 2021. There is no need to stay in the trade if you are rightly worried about losing more money. So, feel free to find another fintech company to bet your hard-earned capital on.

As of the date of publication, neither Louis Navellier nor the member of the InvestorPlace research staff principally responsible for this article holds (directly or indirectly) any position in the securities mentioned in this article.

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Nigerians react to Kuda Bank’s reported N6 billion loss https://bellowingark.org/nigerians-react-to-kuda-banks-reported-n6-billion-loss/ Sat, 17 Sep 2022 17:40:57 +0000 https://bellowingark.org/nigerians-react-to-kuda-banks-reported-n6-billion-loss/ Nigerians have reacted to the loss of 6 billion naira recorded in 2021 by Kuda Microfinance Bank, which was more than 7 times the N868 million loss reported in 2020. Many have criticized the firm for its “bank for free» customer acquisition strategy, which takes place without transfer fees within the bank. The strategy also […]]]>

Nigerians have reacted to the loss of 6 billion naira recorded in 2021 by Kuda Microfinance Bank, which was more than 7 times the N868 million loss reported in 2020.

Many have criticized the firm for its “bank for free» customer acquisition strategy, which takes place without transfer fees within the bank. The strategy also means 25 free transfers to other banks each month with an additional free transfers to other banks costing N10 each.

To enable the bank to increase its revenue and move towards profitability, there are many suggestions for modifying its strategy.

What they say

@Afolabij1 said, “On Kuda Financial Status (FY21), the bank is making 3 billion in revenue while recording a loss of 6 billion (Naira). High expenses, high defaults on overdrafts and expensive marketing, among others, contributed to this performance. The bank will have to cut costs, correct its overdraft rate and further increase its income as it looks to be profitable in the future.

The news continues after this announcement




@ErnieFemiOwen said, “This Kuda Bank madness just validates my point! Product managers with banking experience are essential to any startup. We see beyond the product set up. Why in God’s green earth am I going to allow transfers I’d rather improve your transfer experience than reduce costs.”

The news continues after this announcement



@IAtalkspace noted, “It’s always been fairly fair to say that Kuda Bank would lose money in the short term for 3 reasons: first, it competes on price while spending a lot on brand awareness/marketing; second, its debit card failure rate is high, customers say; three, relatively slow to full deployment”

@Carnage4Life said, “Kuda, a Nigerian neo-bank, lost ₦6,092,554,866 ($14,214,681) in 2021. Much of this was due to bad loans as their default rate was 69% compared to 4.8% for traditional banks. Cheap credit is a great growth tactic, but a horrible business model.

@Titoipinmoye wrote, “At the end of the day, Kuda is not a commercial bank. My question is what problem are they really solving?”

What you should know

  • Kuda Bank reported revenue of N3.2 billion in 2021, compared to N72.6 million reported during the same period in 2020.
  • The 44-fold increase in revenue in just one year is the result of the aggressive growth and market penetration the bank deployed during the year as it focused on growing its loan portfolio.
  • In July, the bank in a letter to customers said it will start charging N50 on all deposits of N10,000 or more made to customers’ Kuda accounts in accordance with the Federal Stamp Duty Act.
  • It said the development would be applicable to deposits on wire transfers, money added to accounts with a debit card, as well as cash deposits made into an account at one of its partner banks.
  • Meanwhile, he pointed out that he earns nothing from the N50 fee as everything would be put back into the government’s pocket.

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This is Walmart’s bank https://bellowingark.org/this-is-walmarts-bank/ Thu, 15 Sep 2022 19:04:12 +0000 https://bellowingark.org/this-is-walmarts-bank/ A neo bank is a financial institution that offers banking services but is not a traditional bank. Neo-banks are often online-only and use technology to provide a more modern banking experience. They typically offer a limited range of financial products and services, such as personal accounts, debit cards, and money transfers. Neo-banks have grown in […]]]>

A neo bank is a financial institution that offers banking services but is not a traditional bank. Neo-banks are often online-only and use technology to provide a more modern banking experience. They typically offer a limited range of financial products and services, such as personal accounts, debit cards, and money transfers. Neo-banks have grown in popularity in recent years as more and more people have become familiar with financial technology. Many neo-banks have similar prices to traditional banks, but some offer lower fees or interest rates. How does Walmart fit into this?

Walmart has made no secret of the fact that it wants to play a larger role in financial services. Years ago, she applied for a banking charter, but when that didn’t materialize, she partnered with traditional and non-traditional providers for services like gift cards, reloadable cards for use general, bill payment, money transfer services and the list goes on. Now, according to a report by Finextrahe is ready to deploy a running account through his startup group, called One.

The market is full of neo, challenger and digital-only banking options for consumers offering free or nearly free banking services. It will be a test to see if the power of the Walmart brand can lure account holders among its employee base and more than 100 million active U.S. shoppers away from their current banking provider. If they attach attractive rewards to the account, they are likely to do very well, especially in these high inflation economic times. It will be interesting to see if they attract customers who currently receive financial services from other neo-banking solutions or if they attract their customers from traditional banks and credit unions.

Here is what the article reports:

The move marks a major escalation in the world’s largest retailer’s foray into financial services, with lending and investment products set to follow.

The bank account will be offered through One, the independent fintech unit that Walmart created under former Goldman Sachs consumer banking chief Omer Ismail.

Originally called Hazel, the unit changed its name earlier this year after acquiring neo-bank player One and gaining salary access company Even. At the time, it already had 200 employees and over $250 million in cash on its balance sheet.

Walmart has 1.6 million US associates and more than 100 million weekly shoppers. Initially, the checking account will be tested with thousands of employees and a small percentage of the retailer’s online customers, Bloomberg says.

Preview by Sarah CaveDirector, Debit and Alternative Products Advisory Services at Mercator Advisory Group

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Digital Banking and Nigeria’s Economic Growth https://bellowingark.org/digital-banking-and-nigerias-economic-growth/ Wed, 14 Sep 2022 07:04:19 +0000 https://bellowingark.org/digital-banking-and-nigerias-economic-growth/ Nigeria recorded 3.7 billion real-time transactions in 2021 – ranking as the 6th most developed real-time payment market in the world – behind India, China, Thailand, Brazil and Korea from South. This is why the country’s digital payments revolution is now driving economic growth and financial inclusion to unprecedented levels for Africa’s largest economy, according […]]]>

Nigeria recorded 3.7 billion real-time transactions in 2021 – ranking as the 6th most developed real-time payment market in the world – behind India, China, Thailand, Brazil and Korea from South.

This is why the country’s digital payments revolution is now driving economic growth and financial inclusion to unprecedented levels for Africa’s largest economy, according to the 3rd edition of Prime Time for Real-Time, released recently by ACI. Worldwide, in partnership with GlobalData, a leading data and analytics company, and the Center for Economics and Business Research (CEBR).

The report – which tracks real-time payments volumes and growth in 53 countries – includes an economic impact study for the first time, providing a comprehensive view of the economic benefits of real-time payments for consumers, businesses and the wider economy in 30 countries. .

The widespread adoption of new digital and real-time payment services in Nigeria has unlocked $3.2 billion in additional economic output in 2021, representing 0.67% of the country’s GDP.

This means that Nigeria ranks 4th among global economies realizing the maximum economic benefits from real-time payments.

“Nigeria is rapidly becoming a leading figure across Africa for the successful digital transformation of the country’s economy,” said Santhosh Rao, Head of Middle East, Africa and South Asia, ACI Worldwide.

Rao added, “Accelerated by the COVID-19 pandemic, Nigerians are increasingly expecting higher speeds, greater simplicity and modern thinking from financial service providers. While cash is still widely used, the shift towards greater adoption of digital and real-time payment services is a testament to the success of government regulators in fostering rapid growth in digital openness, especially payments.

But digital banks should not be confused with online banking or mobile banking platforms. Neobanks or digital banks have no affiliation with traditional banks. They don’t have a bank machine or a physical branch that you can walk into. But like their physical counterparts, they offer services similar to what one would get from a physical bank.

The difference between a digital bank and a physical bank lies in the banking process. For digital banks, the entire banking process is online.

In the case of mobile banking or internet banking, it is not the same as digital banking, as they are complementary services offered by traditional banks. They allow users to carry out certain transactions remotely. These transactions include payment of electricity or cable bills, money transfers and data subscription

ALAT simplifies payments and collections with the new Quick Response (NQR) functionality. It is one of Nigeria’s digital banking platforms, which has again raised the bar in service delivery by including an NQR-based payment and collections solution to boost convenient financial transactions. and safe.

ALAT’s new feature, known as NQR or Quick Response (QR), is a code-based payment and collections solution that offers fast, easy, secure, reliable, contactless and phone-based options. account to receive and pay for goods and services.

Announcing the new feature in a press release, the digital bank explained that merchants/business owners/individuals can view generated QR codes on ALAT to receive on-the-spot payments for goods and services.

“Payers/customers select the NQR option on their bank’s mobile app and scan the displayed NQR codes to make payment to the merchant. merchants/business owners and payers receive instant notification of payment made,” the bank explained.

The benefits of NQR over ALAT include simplicity of use, easy setup, zero acquisition cost, and a seamless merchant onboarding process. Other benefits are super-fast deployment, instant payment and settlement, and fast and secure checkout.

In terms of transactions that can be made using the new feature, the bank said transaction limits are determined by the payer’s bank. However, the bank revealed that transactions below N250 would attract 50 kobo, while those between N25 and N999.99 would be charged N1.

Transactions between N1000 and N4,999.99 will attract N5, just as those between N5000 and above would pay the applicable fee of N25. The bank revealed that the fees payable for the service are currently the lowest in the industry.

FG establishes digital infrastructure across Nigeria – Galaxy Backbone

Nigeria is building efficient and productive digital infrastructure that will fuel and propel its digital economy to grow gross domestic product (GDP), the Galaxy Backbone (GB) said.

GB’s chief executive, Prof. Muhammed Bello Abubakar, said so during the ICTEL exhibition, according to a statement from the IT agency.

“The digital world has accelerated in 2020 during the pandemic, so today we have a lot of transactions that are in the billions of dollars, starting and ending on different digital platforms and in this way a lot of data is generated . This data should be stored safely somewhere and also backed up to ensure and prevent unforeseen circumstances. Organizations must continue to devise innovative ways to store and back up their data to ensure business continuity,” according to the statement signed by agency spokesperson Chidi Okpala, citing Abubakar.

He said Galaxy Backbone, the digital infrastructure and shared services platform for public and private organizations, is playing an active role in Nigeria’s digital transformation journey.

He said, “We are proud of the investment and work we have done and continue to do to ensure that the backbone and network infrastructure that powers Nigeria’s digital economy is secure, available and efficient.

“Our world-class Tier III data center and soon to be Tier IV data center for cloud and disaster recovery purposes is available to everyone and later today we’ll be diving deep into its huge potential for Nigerian small and medium enterprises, businesses and government.”

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EMEA Daily: Amazon acquires Cloostermans https://bellowingark.org/emea-daily-amazon-acquires-cloostermans/ Fri, 09 Sep 2022 20:10:00 +0000 https://bellowingark.org/emea-daily-amazon-acquires-cloostermans/ Today, in Europe, the Middle East and Africa, Amazon has acquired Belgian robotics company Cloostermans and Wise Platform has launched a new solution to help banks enable their customers to receive SWIFT transfers. Roger Federer-backed running shoe brand launches resale site in Green Push Seeking to boost its sustainability and reach new customers, Swiss footwear […]]]>

Today, in Europe, the Middle East and Africa, Amazon has acquired Belgian robotics company Cloostermans and Wise Platform has launched a new solution to help banks enable their customers to receive SWIFT transfers.

Roger Federer-backed running shoe brand launches resale site in Green Push

Seeking to boost its sustainability and reach new customers, Swiss footwear and sportswear brand On, backed by tennis star Roger Federer, has launched a resale site called Onward.

The new site will buy and sell second-hand shoes and do the same with second-hand clothes by the end of the year, according to a report by Bloomberg published on Friday (September 9).

Amazon acquires Belgian warehouse automation company Cloostermans

In a bid to make its workplaces “safer, simpler and more productive”, Amazon has signed a deal to acquire Belgian “mechatronics” company Cloostermans.

Cloostermans’ technology is already being used in Amazon facilities to move pallets and bins and to package products for delivery. With this acquisition, Amazon will be able to more quickly deploy solutions like these to its workplaces, the company said in a press release.

Fly Now Pay Later Select receipt for collections and recovery

Received Debt Collection Platform has been selected by Buy Now, Pay Later (BNPL) Fly Now Pay Later Airline for its collection and collection management solution.

Jasper Dykes, CEO of Fly Now Pay Later, said the solution will help the company “deliver an enhanced payment collection experience to our customers”, adding that “our team and our customers will benefit from the maximum flexibility and control to receive”.

Wise Platform brings SWIFT transfers to neobanks

Wise Platform, the enterprise-facing arm of cross-border payments company Wise, on Friday (September 9th) announced the launch of its new SWIFT Receive service, which will enable Wise’s client institutions to facilitate cross-border payments, even if their bank is not connected. to SWIFT.

The new service should be welcomed by neobanks that are not connected to the SWIFT network due to the time and resources required to establish a connection, Wise said on its website.

With this new service, Wise will make it easier for neobanks to connect and enable their customers to efficiently and securely receive international payments via SWIFT using their existing account details.

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NEW PYMNTS SURVEY FINDS 3 IN 4 CONSUMERS HAVING HIGH DEMAND FOR SUPER APPS
About: Results from PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy,” a collaboration with PayPal, analyzed responses from 9,904 consumers in Australia, Germany, UK and USA. and showed strong demand for one super multi-functional app rather than using dozens of individual apps.

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Learn more

https://www.pymnts.com/news/cross-border-commerce/cross-border-payments/2022/wise-platform-brings-swift-transfers-to-neobanks/partial/

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Wealthy investors flock to AT1 bonds amid wave of issuance https://bellowingark.org/wealthy-investors-flock-to-at1-bonds-amid-wave-of-issuance/ Wed, 07 Sep 2022 18:45:00 +0000 https://bellowingark.org/wealthy-investors-flock-to-at1-bonds-amid-wave-of-issuance/ By Ashley Coutinho High net worth investors and institutional investors are flocking to additional Tier I (AT1) bonds in search of higher yields amid a flurry of issuance in recent weeks. So far in the current financial year, five Public Sector Banks (PSBs) have raised around Rs 15,000 crore through this channel. On Wednesday, the […]]]>

By Ashley Coutinho

High net worth investors and institutional investors are flocking to additional Tier I (AT1) bonds in search of higher yields amid a flurry of issuance in recent weeks.

So far in the current financial year, five Public Sector Banks (PSBs) have raised around Rs 15,000 crore through this channel. On Wednesday, the State Bank of India (SBI) raised Rs 6,872 crore through AT1 bonds at a cut-off rate of 7.75%, according to a person briefed. On Tuesday, HDFC Bank issued bonds worth Rs 3,000 crore at 7.84%, while a week earlier Bank of Baroda hit the market with the issuance of around Rs 2,500 crore at 7.84%. 7.88%, according to reports.

Experts said these issues have taken off given the reduction in trading volatility seen in these bonds and cleaner bank balance sheets. These bonds offer a higher yield to investors and an alternative source of capital to issuers.

“Perpetual bonds (AT1 bonds) are very popular among investors in India. Many mutual funds in all categories allocate to AT1 bonds. In fact, wealth managers also recommend perpetual bonds directly to investors,” said Rohit Sarin, co-founder of Client Associates, a wealth management firm.

Also read: RBI issues ‘alert list’ on entities not authorized to trade forex

AT1 bonds offer relatively higher YTMs than NCDs issued by the same issuer.

For example, an SBI 2026 perpetual bond is available at 7.8% against a AAA-rated non-convertible debenture (NCD) at around 7% and maturing in 2026. These bonds also score higher than fixed deposits, with yields after tax which may be 80%. -90 basis points more for those in the highest tax bracket.

“Wealth managers selectively offer them to clients based on their risk appetite. Customers, on the other hand, prefer high-quality names such as SBI and HDFC Bank,” added A Srikanth, co-founder and CEO of NEO, a multi-family office.

AT-1 bonds, which are perpetual bonds with no maturity date, pay a slightly higher interest rate than similar non-perpetual bonds. Banks have the right but not the obligation to repay the principal amount after exercising a call option.

These bonds had fallen out of favor in early 2020 after the YES Bank episode and rising risk sentiment led individual and institutional investors to dump these bonds. The bank was bailed out by a consortium led by the State Bank of India, which wrote off Rs 8,415 crore of AT-1 bonds under the reconstruction program, resulting in losses for several investors.

“These bonds are unsecured and subordinated. The Bank reserves the right not to pay interest to bondholders if it declares losses during a given year. A call option belongs to the issuer who can call the bonds back on a predefined date if the interest rate drops, which means that these bonds generate little capital appreciation when the interest rate drops,” Sarin said.

Ashish Shanker, managing director and CEO of Motilal Oswal Private Wealth, believes that it is best to stick with bigger and more reliable names such as SBI, HDFC Bank and Axis Bank, as these instruments are unsecured and can be amortized, which makes them risky for individual investors. .

Shanker believes AT1 bonds are more suitable for institutional investors and family offices that have holding company structures that can reduce overall tax expenditures. “People in the highest tax bracket would be better off investing in mutual funds rather than such bonds, given that after-tax returns will be less than 5% after taking into account a rate of ‘full marginal tax of 42.74%,’ he said.

Investors should assess a bank’s balance sheet, ability to raise capital, pedigree, Tier 1 Tier 1 capital and other reserves from which AT-1 bonds will be managed before investing said experts.

CET1 capital is a bank’s Tier 1 capital relative to its total risk-weighted assets.

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Latest News | RBI imposes sanctions on five cooperative banks https://bellowingark.org/latest-news-rbi-imposes-sanctions-on-five-cooperative-banks/ Mon, 05 Sep 2022 14:56:10 +0000 https://bellowingark.org/latest-news-rbi-imposes-sanctions-on-five-cooperative-banks/ Mumbai, Sep 5 (PTI) The Reserve Bank has imposed sanctions on five co-operative banks, including Rs 25 lakh on Karnataka State Co-operative Apex Bank, Bengaluru, for regulatory compliance failures. The penalty to Karnataka State Co-operative Apex Bank Ltd was imposed for failing to follow instructions on “housing finance”, the RBI said in a statement. Read […]]]>

Mumbai, Sep 5 (PTI) The Reserve Bank has imposed sanctions on five co-operative banks, including Rs 25 lakh on Karnataka State Co-operative Apex Bank, Bengaluru, for regulatory compliance failures.

The penalty to Karnataka State Co-operative Apex Bank Ltd was imposed for failing to follow instructions on “housing finance”, the RBI said in a statement.

Read also | Apple’s next Watch Pro will likely come with additional physical buttons.

In another statement, he said a fine of Rs 15 lakh had been imposed on Thane Bharat Sahakari Bank Limited, Thane, for failing to comply with instructions issued by RBI on “Client Protection – Limitation of Client Liability cooperative banks in unauthorized countries”. Electronic banking transactions”.

A fine of Rs 5 lakh has been imposed on Rani Laxmibai Urban Co-operative Bank, Jhansi for failing to comply with specific instructions issued to it by RBI under Supervisory Action Framework (SAF), the central bank said.

Read also | Realme GT Neo 3T teased online, launching soon in India.

The RBI has also imposed a fine of Rs 2 lakh on Nicholson Co-operative Town Bank (No. 8), Thanjavur District, Tamil Nadu for violating instructions issued under exposure standards and legal/other restrictions – UCB.

A fine of Rs 10,000 has been imposed on Urban Co-operative Bank, Rourkela for violating standards relating to the Depositors Education and Awareness Fund.

The RBI also said the sanctions are based on shortcomings in regulatory compliance and are not intended to rule on the validity of any transaction or agreement made by banks with their customers.

(This is an unedited and auto-generated story from syndicated newsfeed, LatestLY staff may not have edited or edited the body of the content)

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The bank’s journey through 75 years https://bellowingark.org/the-banks-journey-through-75-years/ Sat, 03 Sep 2022 09:49:39 +0000 https://bellowingark.org/the-banks-journey-through-75-years/ The development of a robust financial system is sine qua non for sustained economic growth. Commemoration of 75e anniversary of India’s independence, a look at the bank’s journey will reveal the task ahead. In historical perspective, banking practices were observed even in the Kautilya era (325-275 BC), but modern banking institutions date back to 1770 […]]]>

The development of a robust financial system is sine qua non for sustained economic growth. Commemoration of 75e anniversary of India’s independence, a look at the bank’s journey will reveal the task ahead. In historical perspective, banking practices were observed even in the Kautilya era (325-275 BC), but modern banking institutions date back to 1770 when Bank of Hindostan was established and operated until 1832. The three presidential banks – Bank of Bengal – 1806, Bank of Bombay – 1840 and Bank of Madras – 1843 formed the foundation of the banking structure which resulted in the formation of the Imperial Bank of India in 1921, assuming the role hybrid commercial bank and central bank of the country.

Starting with Allahabad Bank in 1865 which merged with Indian Bank in 2020, “Swadeshi Movement” in 1906 paved the way for the proliferation of several Indian-owned banks, some were established in the princely states of India. Some of them still thrive as public sector banks (PSBs).

At the time of independence, there were 97 regular commercial banks including Imperial Bank of India, 557 non-regular banks and 395 cooperative banks. A total of 1049 banks barely held deposits of Rs.1261 crores and loans of Rs. 475 million rupees. In the post-independence turmoil, there were large-scale closures and bank mergers.

On the recommendations of the Hilton Young commission in 1925, the Reserve Bank of India Act was passed in 1934 which led to the establishment of the Reserve Bank of India which commenced operations in April 1935. RBI was further strengthened by enacting the Banking Regulation Act -1949 authorizing it to regulate banks.

But the private banks in the early years of independence used to mobilize deposits generally from all walks of life, but provided loans mainly to certain large industrial houses and owner-managed entities. As the five-year plans were rolled out, the critical role of banks came under scrutiny. Unbalanced credit expansion and earned interest in loans led to the implementation of social control over banks in 1967 to ensure an equitable distribution of development credit. After the RBI became operational in 1935, the role of the Imperial Bank of India was transformed into a full fledged commercial bank. In view of its large-scale activities and spread, it was converted into the State Bank of India in 1955 by passing the SBI Act. SBI had thus become the first public bank in India long before the nationalization of the banks.

In the midst of the consolidation of the banking sector, just before the nationalization of banks – in June 1969 there were 73 banks with 8187 bank branches with 17% of the branches being in rural areas. Bank deposits could reach only Rs. 4646 crores and outstanding credit languished at Rs. 3599 crores too concentrated in few pockets.

  • Bank after nationalization 1969 – 1991:

Seeing little impact of social control on banks and the slow growth of banks, 14 major commercial banks were nationalized on July 19, 1969 and 6 more in 1980, thus bringing 90% of the banks then into the fold of the government, including including that of the already state-owned SBI. .

After the nationalization of major banks, credit growth and deployment accelerated to expand the branch network in rural and semi-urban areas. Several policy initiatives have been undertaken to strengthen banking penetration. Introduction of the Lead Bank Scheme – 1969, State Level Banker’s Committee (SLBC) – 1971, Priority Sector Lending Standards – 1974 combined to give impetus to the expansion of credit to agriculture, industry, small entrepreneurs and certain identified sectors of the economy.

Regional Rural Banks (RRBs) joined in 1975 to help commercial banks reach unbanked centers more quickly. The establishment of the Indian Deposit Insurance and Credit Guarantee Corporation (DICGCI) in 1978 instilled confidence in depositors. The creation of NABARD in 1982 further consolidated the growth of the formal banking system in the hinterland.

For nearly two decades after nationalization, the PSBs made considerable efforts to extend banking services to rural areas. As a result, the number of bank branches reached – 59,752 in 1990 compared to 8,167 in 1969. Among them, the network of rural branches reached 58.2% compared to 17% before nationalization, the semi-urban presence was 19% while the rest were in cities. . During the period, bank deposits reached Rs 28,609 crore and outstanding credit reached Rs 17,352 crore. After the adoption of the new economic policy, banking reforms began in 1991, promoting competitive growth in the banking sector.

  • Post-reform banking system 1991 – 2022

Based on the reports of the Narasimham Committee, banks have adopted internationally accepted prudential standards – capital adequacy standards under the Basel Committee, income recognition and asset classification (IRAC), standards provisions, the entry of new private banks and other reform measures have created systemic strength for PSOs to prepare to enter the buyer’s market.

The adoption of core banking technology, the formation of the National Payment Corporation of India (NPCI) in 2008, interoperability between banks, the issuance of RuPay debit cards in 2012, and the introduction of the app UPI in 2016 brought a massive shift towards digital banking. The demonetization of high-value currencies in November 2016 and the pandemic of 2020 gave the digital banking system a further boost. The entry of fintech and increased collaboration with non-banks, neo-banks (virtual banks), the entry of differentiated banks – small financial banks and payment banks have expanded the banking reach further towards the indoor courts serving people at the bottom of the pyramid.

The implementation of the “Indradhanush” reforms in August 2015 improved governance in PSOs as a follow-up to the deliberations of Gyan Sangam – I. The next round of reforms in PSOs led to the introduction of the framework of Improved Access and Service Excellence (EASE) in January 2018. EASE reform metrics was designed in collaboration with Boston Consulting Group (BCG) and Indian Banks Association (IBA) which has been updated every year and EASE 5.0 is currently being implemented in PSBs.

Another strategic move has been the large-scale consolidation of PSBs, reducing them from 26 in 2017 to 12 in April 2020. Stronger and larger PSBs, together with their private counterparts and non-bank financial intermediaries, have together created a healthy competitive banking landscape.

There was a massive surge in banking infrastructure after 1991. As of March 31, 2022, the number of bank branches has reached 1,51,320. ATMs have operated at 2,15,061 while POS terminals have reached 60,70,142. Debit cards were 917.6 million while credit cards reached 73.6 million offering alternative distribution channels.

Thanks to these massive efforts, bank deposits reached 169 trillion rupees while credit was close to 123 trillion rupees.

Led by the JAM trinity commonly known as – Pradhan Mantri Jan Dhan Yozana (PMJDY), Aadhar and Mobile, banking outreach has made significant progress. As a result, RBI’s Financial Inclusion Index reached 56.4 in March 2022 from 43.4 in 2017, while the Digital Payments Index (DPI) reached 349.30 against 100 in March 2018.

When the three distinct phases of banking development – ​​1949-1969, 1969-1991 and 1991-2022 spanning 75 years are looked back upon, the spread of banking in India has accelerated with the adoption of advanced technology and the rapid expansion of the banking sector. touchpoints touching the lives of millions of people. With more sophisticated technology and diversified products, banks should accelerate their role in spreading credit to move the economy towards a short-term US$5 trillion economy and a short-term US$10 trillion economy. here 2030.



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Industry Meets Academia at SIBM Pune’s Business Conclave: Manthan 2022 https://bellowingark.org/industry-meets-academia-at-sibm-punes-business-conclave-manthan-2022/ Thu, 01 Sep 2022 14:39:59 +0000 https://bellowingark.org/industry-meets-academia-at-sibm-punes-business-conclave-manthan-2022/ Symbiosis Institute of Business Management, Pune has successfully concluded one of India’s largest business conclaves, Manthan 2022. With over 25 online sessions from over 60 towering personalities, the conclave achieved the goal of SIBM Pune to provide a platform that enables a rich confluence of ideas. , ideas and innovations aimed at converging practices from […]]]>

Symbiosis Institute of Business Management, Pune has successfully concluded one of India’s largest business conclaves, Manthan 2022. With over 25 online sessions from over 60 towering personalities, the conclave achieved the goal of SIBM Pune to provide a platform that enables a rich confluence of ideas. , ideas and innovations aimed at converging practices from industry and academia.

The conclave saw leading industry experts engage with students through lectures, fireside chats and panel discussions. Discussions on ‘Banking and Finance’ touched on relevant topics such as growth in uncertain economies, the growing challenges of neo-banks in India, financial inclusions and the future of investment banking with the advent of technology.

Industry leaders from the fields of consulting and strategy have provided an array of actionable insights to students by linking subjects taught in business schools to boardroom situations. Keynote sessions on strategic growth and employee experience gave the audience a holistic understanding of the topic, and panel discussions on thinking about first principles and accelerating digital transformation offered invaluable insights that , once again, aligned student knowledge with industry practice.

Sessions on healthcare and the pharmaceutical industry had elaborate speeches ranging from molecules to markets. Keynote sessions on the pillars defining the healthcare ecosystem, healthcare industry challenges and customer-centric digital transformation painted a comprehensive picture of the healthcare ecosystem in India and globally and how industry emerged unscathed from the pandemic. Holistic panel discussions on R&D in the Indian pharmaceutical industry, the advent of MedTech systems and the social determinants of health further sharpened the students’ industry acumen.

Dr. Ramakrishnan Raman, SIBM Pune Director and Dean of Symbiosis International Faculty of Management (Deemed University) shared “While online, the screen was no barrier to interactions between the esteemed panelists and enthusiastic students. The chat boxes were overflowing with questions that guests discussed at length citing examples of industry experiences. It was a great privilege to host such industry veterans and participate in highly informative and interactive sessions. »

“We thank the panelists for their time, the knowledge shared and the success of Manthan 2022. We hope that future Manthan Conclaves by SIBM Pune will continue to contribute to its legacy of bringing academia and industry together,” said Ashwini Kumar – Student President SIBM Pune.

Disclaimer: This article is a paid publication and does not involve any journalistic/editorial involvement of the Hindustan Times. Hindustan Times does not endorse/endorse the content(s) of the article/advertisement and/or opinions expressed herein. Hindustan Times shall not be in any way responsible and/or liable in any way whatsoever for anything stated in the article and/or also with respect to the view(s), opinion(s) ), announcement(s), statement(s), affirmation(s) etc., stated/presented in the same.

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